Sterling posted gains against the greenback yesterday in the wake of stronger equities

Sterling posted gains over a cent against the US dollar yesterday as strong equity prices encouraged investors away from the haven currency.

• Sterling rose against a broadly weaker dollar on Monday, rebounding from two-week lows hit last week, as risk-taking sentiment re-emerged on views US monetary policy would remain extremely loose for some time.
  
• Stock markets on both sides of the Atlantic enjoyed strong gains with London's FTSE index closing up just shy of 2.0%, which boosted demand for the higher-risk UK currency.
  
• The pound also found traction as the market priced in an upward revision to the UK 3 rd quarter GDP figure. Positive economic numbers have supported claims that the economy did not contract by as much as was reported, which has lent support to the pound.
  
• However, in trading this morning the dollar has trimmed losses as Asian stocks failed to follow up a stronger day on Wall Street.
  
• Analysts have noted that trading is likely to be thin and price moves exaggerated ahead of the US Thanksgiving holiday on Thursday.